Tech sales are big. And they’re predicted to grow even more in the year ahead. The 2020 TIN Report celebrates the resilience in NZ’s technology sector, with TIN’s annual analysis of all things tech. With the tech sector poised for further greatness and several book club readers in tech sales, it’s great to have a focus on this important industry.
What’s special about this month’s book?
Well, it’s a report. You’ll find some opinions, but they’re strongly backed up by cold, hard, factual analysis of tech sector data. Including sales data.
Just last year, the 2019 TIN report launched with live events in Auckland, Wellington, and Christchurch. What a difference in 2020 – COVID-19, lockdowns, a seismic economic shift.
The show must go on! 2020’s TIN Report was launched at the Tech Pulse virtual event, held over 3 days at the end of Nov 2020. And like TIN does every year, the TIN Report tracks the Kiwi companies that have made technology one of NZ’s leading export sectors and a force for good in New Zealand.
Greg Shanahan, Managing Director of Technology Investment Network, admits that the word ‘unprecedented’ has become ‘something of a cliché’ – Pg 3. Still, it’s probably one of the best words to describe the huge challenges the tech sector (and others) faced and worked to overcome in 2020.
And rightly so. We’re living in a pivot-al (sorry, that ‘pivot’ word again!) time in history. The 2020 TIN Report would be remiss not to talk about this.
Details for the 2020 TIN Report
Book Title – 2020 Tin Report – 16th Edition
Author – Technology Investment Network (Greg Shanahan and the TIN writing team)
Publication Date – November 2020
Who is Greg Shanahan?
Greg Shanahan is the Founder and Managing Director of the Technology Investment Network, with 16 years of dedicated analysis of NZ’s technology sector to his credit. Well-known and well-loved across NZ’s tech sector, Greg’s enthusiasm for the huge potential bubbling up through the tech sector is, like Christmas 2020, a bright glimmer of normality in an unprecedented (oops, that word again!) year.
What is the Technology Investment Network?
The Technology Investment Network (TIN) is a private company with a single-minded focus – to help facilitate the growth of the technology sector in New Zealand. The leading independent source of information on New Zealand’s technology sector, they’ve ‘been collecting and analysing data on New Zealand technology export companies for 16 years‘. – Pg 120
What is the TIN Report?
Data. Deep Analysis. Tech sector insight. The annual TIN Report is a unique quantitative study of New Zealand’s leading internationally focused technology businesses in the key areas of Hi-Tech Manufacturing, ICT and Biotechnology. This report is also TIN’s annual critical reference for benchmarking the performance of New Zealand’s 200 largest globally focused technology companies. Produced by TIN, sponsored by New Zealand Trade and Enterprise (NZTE), Absolute IT, BNZ, EY, James & Wells, and NZX.
How do you get listed in the TIN Report?
To get listed in the TIN Report, your business must
- originate from and have a meaningful presence in New Zealand, and
- generate at least 10 percent of revenue offshore, and
- be in the high-tech manufacturing, biotechnology, or ICT industries.
Each company has an in-depth profile including addresses, phone numbers, websites, staff employed, revenue and who the CEO is.
This year’s TIN Report gives details on 300 companies:
- TIN100 Company Profiles
- Next100 Company Profiles
- Early Stage Company Profiles
How readable is the 2020 TIN Report?
This is one of the best reports on the planet, for the unique combination of serious mathematical analysis and readability. So no, it’s not boring.
Greg Shanahan and the TIN team do an excellent job unpacking the growth stories in NZ’s tech sector. Their quality research, analysis and writing obviously comes from a place of expertise. Easy-to-read tables and stories are interspersed with photos, diagrams, and quick summary pages.
How about some Tech Stats?
For the TIN 200 in the financial year ending 31 March 2020:
- Revenue reached $12.7 billion
- This was an increase of 8.3% – or $973 million – on 2019
- Not quite matching the annual $1 billion growth recorded in the previous two reports, this is still impressive
- This $12.7 Billion revenue includes $9.4 Billion worth of exports (increase of 10.6% on 2019)
- Total number of staff at home and abroad is a record-breaking 55,167.
- 14 companies gained 20 or more places in the TIN200 revenue rankings
- NZ’s tech sector added more than 4,000 jobs in the last financial year
- NZ has 56 tech exporting companies each reporting revenues of over $50m
Any memorable quotes?
With stats like this, it’s no wonder Greg and the TIN team see the tech sector for what it is – a beacon of light in an uncertain world.
There is a critical mass of success in this sector which will provide a bedrock of resilience for this country in the years to come. – Pg 3
2019 TIN REPORT FORESEES THE RISE OF A MASSIVE TECH OPPORTUNITY
Reflecting on last year’s 2019 TIN Report is almost bittersweet. Greg Shanahan’s heart has always been that the technology sector will benefit everyone. COVID-19 just brought that time forward with a big thump
New Zealand is a very small pond, so you don’t need a very big stone to create significant economic ripples – and the massive growth in foreign and local investments and demands for talent are doing just that. What this means is we have a once-in-a-generation opportunity to engage the tech sector with the untapped parts of our economy to eliminate entrenched economic disparities and achieve social equity. (Introduction, Page 01, 2019 TIN100 Report ).
TECH WITH A PURPOSE
Still, in uncertain times, TIN’s solid purpose and values show the way ahead:
We may not have all the answers, but we do have purpose. In the midst of this difficult year, and certainly for the years ahead, TIN’s purpose has never been clearer to me than it is now. We pursue a simple mission: to help facilitate the growth of the tech sector in New Zealand. – Pg 3
TECH COMPANIES MIGHT NEED SUPPORT TOO
Not everyone in the tech sector came through COVID-19 unscathed:
Rather than having a five to ten year period for technology adoption, companies have had to change within the space of weeks and months, and some in the TIN200 were in a unique position to benefit whilst others did not. – Pg 50.
What are some insights I can get from reading this report?
Companies listed as Rising Stars have some common traits. – Pg 17
- Their four drivers of success are identified as Culture, Business Model, Innovation and Capital.
- Average revenues are 48% higher than the TIN200
- They employed an additional 1,700 new staff this year
- Sales and marketing expenditure increased to 27.4% of revenue, growing 18% in the past year compared to 4% growth for the TIN 200
So much great data, so beautifully and simply displayed. List and graphs of:
- Employment Growth
- Regional Impact for the TIN200
- Primary Sector Markets – High-tech Manufacturing, ICT, Biotech
- Secondary Sectors Overview – Healthcare, IT Services and Support, Appliances, Fintech, Agritech, Operational Support, Software Solutions, Digital Media, Electronics, Heavy Manufacturing, Communication Solutions, Navigation Product.
- Maori Owned Technology Companies
Plus, the TIN Mavericks series paying tribute to personalities behind iconic companies. – Pgs. 55-60
2020’s TIN Mavericks are
- Dr Sean Simpson, Co-founder and Chief Scientific Officer of LanzaTech
- Carmen Vicelich, CEO and Founder at Valocity Global and Founder at Data Insight
Be sure to check the EY Ten Companies to Watch list – the companies with the highest dollar increase in revenue in the past year. Included are companies that have provided revenue figures and achieved a minimum growth of 5%. – Pg 62. Those to watch out for in 2020 include Fisher & Paykel Healthcare, Xero, Gallagher Group and The Instillery.
Who should read this report?
- Everyone who wants to see a better future for NZ
- Tech leaders who want to benchmark themselves against the best in their industry sector and network with others in NZ’s technology sector
- Business leaders serving the tech sector, who want to build your tech networks
- Politicians, social commentators, and futurists who want to be informed about tech directions
- Universities and Schools – especially secondary schools – who want to inspire the next generation of tech and business leaders
Where can I buy this report?
The 2020 TIN Report is available in eBook or hard copy and can be ordered from the TIN website
Your investment to own the 2020 Tin Report starts from $399 for the eBook.
If you’re going to pay $399 anyway, check out options to become a member of TIN, from $495 per year (base rate for technology companies that are pre-revenue).
Recommended snacks to accompany reading this report?
Anyone whose business is still standing post COVID-19 deserves a party, preferably at a restaurant or café that you’d like to support.
If you’re still WFM (working from home), order in some champagne to serve with fresh bread, NZ High Country Salmon, blue and cheddar cheeses, and Rutherford and Meyer Pear Fruit Paste. To your success!